A drone view shows floating crane ships HEBO LIFT 10 and HEBO LIFT 2 recovering the "Bayesian" yacht of British tech entrepreneur Mike Lynch

A drone view shows floating crane ships HEBO LIFT 10 and HEBO LIFT 2 recovering the "Bayesian" yacht of British tech entrepreneur Mike Lynch, who died when the yacht sank off Porticello, near Palermo, Sicily, Italy, June 20, 2025. REUTERS/Danilo Arnone TPX IMAGES OF THE DAY

Dispatch 68 – Digital Fog in Hormuz

Mike Schuler
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June 21, 2025
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Dispatch No. 68


Hello Club Members! Here is your weekly Dispatch with all the maritime news you need to know to end your week.

Ship Photo of The Week

A drone view shows floating crane ships HEBO LIFT 10 and HEBO LIFT 2 recovering the "Bayesian" yacht of British tech entrepreneur Mike Lynch
Floating crane ships HEBO LIFT 10 and HEBO LIFT 2 recovering the “Bayesian” yacht of British tech entrepreneur Mike Lynch, who died when the yacht sank off Porticello, near Palermo, Sicily, Italy, June 20, 2025. REUTERS/Danilo Arnone

Top Stories

Tanker Collision Highlights GPS Chaos

GPS jamming and spoofing along Iran’s coast are causing serious disruptions to navigation in the Strait of Hormuz, with nearly 970 vessels per day reporting interference since hostilities began on June 13, according to France-based MICA. Hotspots near Bandar Abbas and Assaluyeh have been especially problematic, prompting some operators to restrict transits to daylight hours.

Last weekend, the Front Tyne briefly “teleported” to Russia—on AIS, at least—before reappearing off southern Iran and resuming its course. In a quasi-related incident, the Front Eagle, a loaded supertanker, collided with the Adalynn, a dark fleet tanker, near Khor Fakkan—an area known for GNSS spoofing—resulting in a massive fire on the Adalynn and a large oil spill. Just two days before the collision, AIS tracking had inexplicably shown the Front Eagle traveling inland.

While officials say the crash likely stemmed from navigational error rather than satellite sabotage, the incident underscores growing concern over safety in electronically contested waters. “Crews are navigating in a digital fog,” warned Orca AI CEO Yarden Gross, citing the dangers of corrupted positioning data and spoofed vessel identities.

Despite the elevated threat level, vessel traffic through Hormuz has remained mostly steady—between 50 and 73 ships per day—even as fears persist that Iran could escalate its hostilities towards western shipping. Still, analysts at Kpler assess the chances of Iran closing the Strait as “very low,” citing the risk of economic blowback, particularly from China, and military retaliation.

Red Sea on Edge: Israeli-Linked Ships Warned to Stay Clear

With escalating tensions between Israel and Iran, maritime risk firm Ambrey has issued a stark warning for Israel-affiliated vessels to steer clear of the Red Sea due to the threat of renewed Houthi attacks. While no merchant ships have been hit since December, the calm may be deceptive.

President Trump’s call for Iran’s “unconditional surrender” and hints at U.S. military support for Israel have heightened concerns. The Houthis have vowed to target any Israeli vessel and declared a blockade on Haifa, prompting Israeli-linked shipping to avoid the region entirely since mid-January.

Ambrey advises Israeli-affiliated ships to steer clear of the southern Red Sea, Bab al-Mandeb, and Gulf of Aden, and urges extreme caution for U.S., UK, and allied vessels that could become caught in the crossfire.

Australia Targets Russia’s Shadow Fleet for First Time

Australia has sanctioned 60 vessels tied to Russia’s so-called “shadow fleet”—a covert armada of aging tankers helping Moscow sidestep oil sanctions. It’s the country’s first direct move against the fleet, which S&P Global estimates includes nearly 600 ships operating through tactics like flag-hopping, AIS disabling, and opaque ownership.

“These sanctions reinforce our stance against those aiding Russia’s invasion of Ukraine,” said Foreign Minister Penny Wong. The listed vessels are now banned from entering Australian waters, with authorities empowered to reroute or expel them.

The action aligns with efforts by the EU, UK, and Canada, and follows rising concerns about the fleet’s environmental and security risks—especially its suspected links to Baltic Sea undersea cable damage. Australia has now imposed over 1,400 sanctions since 2022, with more expected.

UK, US Join Coordinated Sanctions Push

Just days after Australia’s move, the UK sanctioned 20 more shadow fleet tankers as part of a broader G7 package targeting Russian oil transport and the defense agency GUGI. Foreign Secretary David Lammy pledged to dismantle “[Putin’s] dangerous shadow fleet.”

The U.S. Treasury followed suit against Iran on Friday, targeting Iran’s defense procurement network and Houthi oil smuggling routes. Among those sanctioned: Hong Kong-based Unico Shipping and its vessel SHUN KAI XING, which allegedly attempted to deliver military components to Iran. OFAC also hit 12 entities and two vessels tied to illicit oil trades funding the Houthis, IRGC, and Russia.

“These actions underscore our commitment to disrupting the Houthis’ financial and shipping pipelines,” said Deputy Treasury Secretary Michael Faulkender. Together, the sanctions represent one of the most coordinated global crackdowns on maritime networks to date.

India Cracks Down After Deadly Cargo Fires

Indian authorities have filed criminal charges against the owner, master, and crew of the Wan Hai 503 after a June 9 explosion and fire killed four sailors off Kerala’s coast. Investigators allege the vessel was carrying undeclared hazardous cargo, including explosives and toxic chemicals, and was being operated negligently. Four crew remain missing; 18 were rescued.

The case echoes a May 25 fire aboard MSC Elsa 3 and comes amid two more incidents—aboard Interasia Tenacity and Wan Hai 613—linked to lithium-ion batteries stored on deck.

Speaking at the IMO’s maritime safety committee, Indian officials called for urgent reforms: “What is in a box can’t be a mystery anymore,” they said, urging global action to tighten dangerous goods declaration and stowage rules.

Cargo Slumps at LA–Long Beach as Tariff Whiplash Hits

Container volumes at the ports of Los Angeles and Long Beach dropped sharply in May, as global trade adjusts to sudden tariff swings. Long Beach moved 639,160 TEUs, down 8.2%, while Los Angeles handled 716,619 TEUs, a 5% decline year-over-year—its slowest May in over two years.

Loaded imports to Long Beach fell 13.4% and exports plunged 18.6%. Only empty containers saw an uptick—a potential sign of a pullback in freight demand.

The downturn follows April’s spike in U.S. tariffs on Chinese goods to 145%, which caused importers to pause orders. A temporary 90-day tariff reduction has since kicked in, sparking a short-term rebound.

“We remain cautiously optimistic that import cargo will rebound at the end of June and into July,” said Long Beach CEO Mario Cordero. Still, forecasts remain grim, with September imports projected to fall nearly 22% year-over-year.

The slow down means container spot rates are finally cooling off. Drewry’s World Container Index slipped 7% to $3,279 per forty-footer this week—snapping a six-week winning streak—thanks to weakening demand for U.S.-bound cargo. Meanwhile, the Shanghai Containerized Freight Index tumbled 10.5% to 1,869.59, dragged down by a sharp 26% drop on the China–US West Coast route.

“It is a sign that the recent surge in imports to the US, which occurred after the temporary halt of higher US tariffs, will fail to have the lasting impact we had initially expected,” Drewry noted in its analysis.

Samsung Pulls Plug on Russian Icebreaker Deal

Samsung Heavy Industries has canceled its $3.5 billion contract with Russia’s Zvezda shipyard to build 15 Arc7 ice-class LNG carriers for the Arctic LNG 2 project, citing contract violations and sanctions. The deal, signed before Russia’s 2022 invasion of Ukraine, had been on hold since early that year.

Samsung delivered hulls for five vessels before Zvezda unilaterally terminated the contract and demanded $800 million in repayment. Samsung is now pursuing damages through arbitration in Singapore.

The breakdown adds to growing uncertainty around Russia’s Arctic energy strategy, which depends on a robust fleet of high-ice-class tonnage. While the lead ship Alexey Kosygin is undergoing trials, the fate of the rest remains frozen in limbo.

Sunken Superyacht Raised 10 Months After Fatal Storm

Salvage crews began lifting the sunken superyacht Bayesian on Friday, nearly a year after it capsized off Sicily, killing British tech tycoon Mike Lynch, his teenage daughter, and five others. The final stage of recovery is scheduled for Saturday, according to TMC Marine.

The 56-meter yacht sank near Porticello during an August storm with winds topping 117 km/h (73 mph). A UK investigation pointed to stability flaws in the vessel’s design as a likely factor. To aid the recovery, crews detached its 72-meter mast earlier this week. The hull is now secured between two Dutch salvage barges.

The operation briefly paused last month after the death of a diver. Once recovered, the vessel will be transported to Termini Imerese for investigation.

As always, we’d love to hear your feedback. Email [email protected] with any questions, comments, tips, or concerns. Don’t forget to check out the Club Discord and gCaptain.com for the latest maritime news.


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